The tracking is easy, unless his particular Blackberry has been rigged to eliminate the GPS function (Secret Service would probably insist on that). Even then, it could still be loosely tracked through cell tower triangulation, but that's not as precise.
Terrorists have used cell phones to set off bombs, but they can't make the cell phone itself explode unless they can rig it with explosives. Then again, I'm not sure that terrorists would have any reason to harm an ally.
I bet some clever soul knows how to turn on the microphone without alerting the owner...